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<br /> 9 <br /> <br /> (ii) The prompt written notification to any rejected applicant of the <br />grounds for any rejection; <br /> <br /> (e) Provide first priority in the selection of qualified eligible tenants to <br />households that meet the Local Preference as more fully described in the Loan Agreement with <br />first priority for persons who have been permanently displaced or face permanent displacement <br />from housing in Santa Ana and second priority for persons who are either residents of Santa Ana <br />and/or working in Santa Ana at least 32 hours per week for at least the last 6 months; and, <br /> <br /> (f) Carry out the Affirmative Marketing procedures of the City of Santa Ana, <br />which are designed to provide information and otherwise attract eligible persons from all racial, <br />ethnic and gender groups in the housing market area to the units. The Owner and the Agency <br />shall cooperate to effectuate this provision prior to the initial renting, or upon occurrence of a <br />vacancy, and the re-renting of any Restricted Units. <br /> <br />B. Owner, its successors and assigns, shall not refuse to lease a unit to a holder of a rental <br />voucher under 24 CFR part 887 (Housing Choice Voucher Program) or to a holder of a <br />comparable document evidencing participation in a federally funded tenant-based assistance <br />program (e.g. HUD-Veterans Affairs Support Housing) because of the status of the prospective <br />tenant as a holder of such certificate of family participation, rental voucher, or comparable <br />tenant-based assistance document. <br /> <br />C. Any lease of any of the Units must be for not less than one year, unless by mutual agreement <br />between the tenant and the Owner. Should the tenant and Owner agree to a term of less than one <br />year, said agreement shall be expressed in some type of written form, signed by the tenant, and <br />maintained in the tenant's rental file held by the Owner. The lease may not contain any of the <br />following provisions (in which references to "Owner" shall mean the Owner, its successors or <br />assigns): <br /> <br /> (a) Agreement by the tenant to be sued, to admit guilt, or to a judgment in <br />favor of the owner in a lawsuit brought in connection with the lease; <br /> <br /> (b) Agreement by the tenant that the owner may take, hold, or sell personal <br />property of household members without notice to the tenant and a court decision on the rights of <br />the parties. This prohibition, however, does not apply to an agreement by the tenant concerning <br />disposition of personal property remaining in the housing unit after the tenant has moved out of <br />the unit. The owner may dispose of this personal property in accordance with state law; <br /> <br /> (c) Agreement by the tenant not to hold the owner or the owner's agent legally <br />responsible for any action or failure to act, whether intentional or negligent; <br /> <br /> (d) Agreement of the tenant that the owner may institute a lawsuit without <br />notice to the tenant; <br /> <br /> (e) Agreement by the tenant that the owner may evict the tenant or household <br />members without instituting a civil court proceeding in which the tenant has the opportunity to <br />present a defense, or before a court decision on the rights of the parties; <br />EXHIBIT 3 <br />3-70